Gold melts afresh on dollar rise

MUMBAI: Gold’s southward journey continued for another day as the dollar recorded a gain against the dollar. The similar trend was noticed at the domestic bullion market on Wednesday as the yellow metal lost ground further after a spate of fresh round of profit-booking.

Analysts said the metal is expected to loose sheen further before bouncing back. The market came under some pressure because of the dollar, which gained after recent record lows, they added.

Silver also came under pressure in the absence of any buying interest, supported by holiday mood for Buddha Purnima.
Turning to gold, Mumbai melted the most as standard gold (99.5) fell to Rs 9,020, down Rs 80 over the last closing level of Rs 9,100 per 10 gm.

Pure gold (99.9) also softened by similar margin before closing at Rs 9,070 per 10 gm. In Chennai, the metal traded Rs 65 lower at Rs 9,065 followed by a drop of Rs 55 at Rs 9,200 in Kolkata. In Delhi, the precious metal recorded a fresh loss of Rs 55 at Rs 9,170 per 10 gm.

In London, spot gold was quoted at $672.50/673.00 in early trading, as against $673.70/674.20 an ounce in New York on Tuesday, when it had fallen more than $5 on a surging dollar. In spot silver, Mumbai lost heavily due to profit-booking amidst fresh arrivals and ready silver (.999) plunged by Rs 270 per kg to Rs 18,875 followed by drop of Rs 265 at Rs 18,265 per kg in Chennai.

In Delhi and Kolkata, the metal tumbled by Rs 200 each before closing at Rs 18,700 and Rs 18,550 per kg respectively. In London, the white metal was down 2 cents at $13.22/13.26 an ounce.